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Economics A Level (DONEEEEEEE)

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Pregunta:

Why can the Short Term Decision Excaberate Underconsumption of Merit Goods and Overconsumption of Demerit Goods?

Autor: eric_galvao



Respuesta:

-Sometimes only the Short term Benefits / Costs are Considered, so the Future is failed at being Considered - Not a Rational Choice? -Merit Goods Long Term Private Benefit will Outweigh their Short Term MPB, and Demerit Goods will have Greater long term MPC than their short term MPC [So therefore that’s why Demerit Goods are over consumed as Long term isn’t being Factored in]


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